Comprehensive Guide on Financial Accounting
What is financial accounting
Financial Accounting is the first accounting branch as it is considered one of the basics of work in the field of accounting, from which all other accounting branches branch.
Financial accounting is concerned with conducting analysis, registration, tabs and classification of financial operations that occur within the company during the accounting period between the company and other institutions in addition to preparing Financial Statements In line with the criteria of accounting measurement approved in the way that is generally appropriate to accounting.
These financial reports aim to provide financial information on the result of the business carried out by the company as well as the financial center of the company in addition to protecting the company's assets and providing profit measurement services and determining economic units. As it is known that financial accounting uses the accepted accounting principles to apply andImplementation of the accounting courseAnd achieving accounting functions and goals required of them.
What is the accounting period?
The period in which the company's accounting activity appears and is often a year. Some companies are committed to the evaluation year from the beginning of January to the end of December, and some companies are heading to the beginnings of their suitability, provided that their accounts are closed within 52 to 53 weeks, that is, a full year.
How is financial accounting divided?
Financial accounting is divided into two types, namely cash accounting and entitlement accounting, in order to show the financial position and determine profit, loss, financial flows and changes inShareholders' equityAnd that is during the specified time period, and each type of financial accounting has characteristics and conditions, and they are as follows:
How are the financial statements determined?
Using the financial statements that are produced annually or quarterly from financial accounting that helps investors, creditors, suppliers and clients to identify the financial status of the company. In addition, the financial statements are subject to criteria for international accounting to be easier, and include financial statements on the following:
What is the relationship of accounting with the financial statements?
The financial statements are considered as financial information indicating the status of the institution from the outputs of the accounting system, and as a result of a tab and analysis of financial statements, which & nbsp; The financial statements make closer to the stage of understanding and make decisions than that they are just financial data that does not indicate a specific direction.
Among the types of accounts used in accounting in general and in the financial statements:
Real accounts: include the elements of the financial position; Origins, opponents,Ownership rights .
Nominal accounts: These are the elements of the income menu; Expenses and revenues.
Financial analysis:
For the purpose of reaching a understanding of the financial statements and reports, and thus the correct decisions, the matter is done through a financial study that we have reached to diagnose the financial situation of the facility, and this study is the financial analysis.
The importance of financial analysis:
The types of financial analysis vary accordingly For the financial period, the nature of the analysis, who did it and others, but in the end the goal remains one.
What is the theory of dual registration?
Try the program nowAccounting is based on monitoring and registering financial events, but registration is done on a fixed accounting basis, which is the double restriction, and says that Any accounting operation has two sides taking and giving, which began to be called a debtor, and the database is called a creditor, considered
How do you do the opening restrictions of a new company?
Open an account in the bank
Be familiar with a functional wayDocumentary session
You have to create an account guide in the manner appropriate to the nature of the company's activity, do not depend on a ready -made model without understanding it and ensuring its suitability for the nature of your work.
What are the accounting principles in financial accounting
UDN Sales Management ProgramAccounting in general has a set of rules and guidance that should be followed when reporting the financial statements. The company must submit financial statements regularly in accordance with the basic and acceptable principles of accounting and includes accounting principles in financial accounting which are as follows:
The principle of cost : It includes the amounts that are spent in cash on the list of accounting assets and are not adjustable to the value of the amount.
The principle of entitlement and recognition of revenues Through it, the revenues are recognized and registered in the UDN and accounting records when they are fulfilled and the revenues are recognized with the registration in the UDN and accounting records when they are achieved, as well as the case with the expenses.
The principle of the province : It includes detecting losses and profits, both achieved and expected.
The principle of disclosure: Through which all the financial information of the institution is determined related to a specific period of time and the disclosure.
The principle of continuity : This principle includes the payment of all financial obligations to the company or the institution in order to achieve commercial goals and ensure that the company is not subject to bankruptcy or settlement.
The principle of imposing cash unity: It includes the principle of determining the measurement of the economic activity of the institution or company by identifying a specific currency.
The principle of matching: This principle is concerned with matching the revenues arranged or due and expenses according to the basis of the entitlement followed.
The principle of accounting period: Through which the commercial activities that occur in the company are determined during the specified time period in order to facilitate accounting processes.
Who needs financial accounting?
Financial accounting needs all those involved in making decisions related to the financial aspects of the company, and managers need them even the non -financial ones, as well as
What is the importance of financial accounting?
Try the program nowWhat should non -accountants know about accounting?
Accounting with monopolistic science is not a group of specialists, but it is closer to the culture that all individuals need as much. Therefore, according to your location, you will need some accounting knowledge, at least the interpretation and reading of the financial statements, and if you do not have the ability to prepare this data yourself, as well as deal withAccounting programs ErP SystemsAnd the introduction of your bills and restrictions, understanding the accounting course, and the most important terms and definitions, all of which deepen it according to your interest and what you want.
What are the responsibilities of the financial accountant?
UDN Sales Management ProgramWhat types of accounting?
Accounting is a science that has branches, each branch specializes in a side, and it is not easy to try to attribute all the accounting sciences under one branch, so with the importance we have made clear for financial accounting, you should see the rest of the branches, so you may find your lost time.
The most important branches of accounting: [three hundred fifty]
As we explained in the previous lines that financial accounting has a very important role in registering all financial transactions for the company and rid them in financial databases such asPublic budgetAnd the data of cash flow and the income statement during the period of time that is determined, as well as financial accounting is concerned with collecting financial information for users outside the company, whether investors, creditors or lenders.
All of these accounting operations occur according to a set of criteria to ensure that correct financial reports represent financial transactions that occur within the financial center, whether they are daily or other operations such as selling products or services to customers or buying the company's needs that should be registered in accurate accounting records.
